Article

Does the fact that the creditors had knowledge of a company’s economic difficulties at the time of contracting with it exempt directors from the liability for the company’s debt?

11/05/2018

In order for directors to be exempt from liability, in addition to knowledge of the insolvency, other conditions must be present, such as the debtor company being controlled by the creditor, which evidences that the risk of non-payment had been assumed. On 11 April 2018, the First Chamber of the Supreme Court issued judgment 207/2018 in which it clarified the scope of the joint and several liability of company directors with respect to the corporate debt which arises after the appearance of the grounds for winding up, in cases where the creditors knew the economic crisis the company was facing at the time of contracting.

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